2. On January 1, 2002, Young Co. paid P500,000 for 20,000 shares of Montana Co.'s common stock and classified these shares as trading securities. Young does not have the ability to exercise significant influence over Montana. Montana declared and paid a dividend of P.50 a share to its stockholders during 2002. Montana reported net income of P260,000 for the year ended December 31, 2002. The fair value of Montana Co.'s stock at December 31, 2002, is P27 per share. What is the net asset amount (which includes both investments and any related market adjustments) attributable to the investment in Montana that will be included on Young's balance sheet at December 31, 2002? choices: P530,000 P540,000 P569,000 P579,000
2. On January 1, 2002, Young Co. paid P500,000 for 20,000 shares of Montana Co.'s common stock and classified these shares as trading securities. Young does not have the ability to exercise significant influence over Montana. Montana declared and paid a dividend of P.50 a share to its stockholders during 2002. Montana reported net income of P260,000 for the year ended December 31, 2002. The fair value of Montana Co.'s stock at December 31, 2002, is P27 per share. What is the net asset amount (which includes both investments and any related market adjustments) attributable to the investment in Montana that will be included on Young's balance sheet at December 31, 2002? choices: P530,000 P540,000 P569,000 P579,000
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter13: Earnings Per Share (eps)
Section: Chapter Questions
Problem 1R: Ponce Towers, Inc., had 50,000 shares of common stock and 10,000 shares of 100 par value, 8%...
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2. On January 1, 2002, Young Co. paid P500,000 for 20,000 shares of Montana Co.'s common stock and classified these shares as trading securities. Young does not have the ability to exercise significant influence over Montana. Montana declared and paid a dividend of P.50 a share to its stockholders during 2002. Montana reported net income of P260,000 for the year ended December 31, 2002. The fair value of Montana Co.'s stock at December 31, 2002, is P27 per share. What is the net asset amount (which includes both investments and any related market adjustments) attributable to the investment in Montana that will be included on Young's balance sheet at December 31, 2002?
choices:
P530,000
P540,000
P569,000
P579,000
3. The following information is available for the Bronson Company for the three months ended September 30 of this year: Inventory, July 1 of this year P1.2M; Purchases P4.5M Freight-in P300,000; Sales P6.4M. The gross margin was 25 percent of sales. What is the estimated inventory balance at September 30?
choices:
P1,200,000
P933,000
P1,500,000
P880,000
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